Beware! Delta Capitals is an offshore broker! Your investment may be at risk.
RECOMMENDED FOREX BROKERS
Don’t put all your eggs in one basket. Open trading accounts with at least two brokers.
We give Delta Capitals some props for having a website that gives away vibes of professionalism. There are rough corners around the edges, and certainly Delta Capitals does not shy away from the occasional contradictory piece of information or shady aspect, but are these nuisances to be applied to the bigger picture of Delta Capitals, or is this broker worth it? Read the review to find out.
We accessed a trading software, a web based one, without registering at all. However, we quickly signed up, and found ourselves in a very peculiar dashboard, which was a part of the trading software. In essence, the client area consisted of a number of tabs in the navigation bar:
This is actually handy, but in no way would a self respecting broker allow this.
Anyway, the trading terminal produces a EUR/USD cost of trade of 2 pips which is not a good spread at all, and can only really benefit the broker. As for a leverage, it is capped for all forex pairs to 1:200.
The following is the list of available trading instruments at Delta Capitals: currency pairs, commodities, stocks, indices, and crypto.
Clients of the broker can access the site in English. Russian, and German.
DELTA CAPITALS REGULATION AND SAFETY OF FUNDS
This is the closest this broker gets to mentioning an actual regulatory environment:
So Delta Capitals is located in the eastern European country of Bulgaria. But is it regulated there? The Financial Supervision Commission (FSC) is the Bulgarian agency that is head of local forex oversight. The watchdog had no mention of the broker on its website.
Besides, we found an official FCA warning that categories Delta Capitals as a clone firm, immediately making it an illicit and UNLICENSED brokerage.
Traders should be trading with risk-free brokers, that hold licensed from renowned and austere agencies, like the FCA or CySec , which have made a name for themselves as some of the top regulators. Readers should be aware that both agencies have adapted very strict rules of conduct, and their licensing framework guarantees safety and security for all clientele. A good example of this is the segregation of accounts which assures that client money and broker money are kept in separate accounts. Furthermore, FCA/CySEC brokers participate in a financial reimbursement scheme that cover traders losses in case the broker becomes insolvent. The FCA provides up to 85 000 pounds per person, while CySEC guarantees up to 20 000 euros.
DELTA CAPITALS TRADING SOFTWARE
The operable trading software is a web based terminal, that is familiar to us, bringing up memories of previous unregulated brokers who have used the same software, just maybe an earlier version of it.
This one has some diversity in chart managements, as well as pending orders. But aside from this, and a cool design, the trading software does nothing else. When you put it against a powerhouse such is the MT4, you will see for yourself that it does not even compare to 1/100th of what the MT4 is capable of.
DELTA CAPITALS DEPOSIT/WITHDRAWAL METHODS AND FEES
The deposit methods according to the payment area are limited to only Credit and Debit cards, and the minimum required amount to open an account is $250. The website on the other hand claims that a user can deposit through bank transfer and crypto, on top of credit/debit cards.
We found a confusing clause that we think concerns either a hidden deposit fee or a deposit processing time of 3 days. What ever it is, the legal documents are filled to the top with ambiguous provisions purposefully left like that to confuse users.
Here is a smart way the broker will tax the user: should the deposited funds not appear in a user’s account, the broker will initiate an investigation which the user will pay for, if any related charges are issued.
Here is a provision which states that the broker may give deposited client funds to third parties in order to satisfy a user’s collateral requirement. Furthermore, the broker is not responsible for what happens to the money it gives to these undisclosed third parties. Next, in case of the insolvency of the third party that holds the funds, there is a chance that the client might not receive her money back. The whole clause is ambiguous, so we leave it to you to read it. Please note that the broker does not hold responsibility should the client lose money because of a third party interference:
Withdrawals as per the T/C are said to be processed within 10 days, which is a very long waiting time, associated exclusively with illicit brokerages. There is no indication of a minimum withdrawal amount.
There are mentions of fees here and there scattered in the Terms and Conditions. The broker has the exclusive right to change these without notifying the user. Here are three small provisions that incorporate what we just said:
The client is charged with a fee fore the maintenance of her account, the charge is 30% from the deposit, or at least $80.
There are a total of 4 bonuses. Three of these, Welcome Bonus/Standard Bonus/Insurance Bonus, require from the user to trade 7 standard lots for every $100 before being able to withdraw. The other bonus, the No-Deposit Bonus, requires 5 standard lots for every $100 (we have not attached a snip).
Next, the broker has the right to do the following things without notifying the user: increase margin requirements, close opened trading positions, and other undisclosed actions.
The inactivity fee of $100 is activated after 90 days of any lack of trading activity.
Should the broker fall into insolvency, the user’s positions will be closed without her consent, which we understand as the broker will not even notify the user that it has gone insolvent.
A user who wishes to file a complaint against the company has a fixed amount of time to do so, otherwise he/she, as per the T/C, agrees to the broker’s actions, whatever they might have been to cause the filing of a complaint.
Last, but certainly not least, any losses incurred as a result of modifications made to the website and trading platform by the broker, are not to be blamed on the company:
These provisions are crystal clear proof that a deposit in Delta Capitals is a huge risk!
How does the scam work?
The usual scam operates on a multi-level, though very basic model. The users will be tempted to click on an Internet ad promising quick and easy profits. If they do, it will take them to a website that will ask for their personal details, including email address and phone number. Once they submit this information, an avalanche of emails and phone calls will be unleashed. Scammers will promise the world to these potential traders in order to induce them to make an initial deposit between $200 and $300.
These “brokers” will get a fat commission from the deposited sums and will transfer the unsuspecting users to “senior” scammers. The latter are smooth talkers who will try to persuade users to invest more funds, using phrases like “now is the right time” and “the moment is perfect for making hefty profits”. Of course, these are empty words, and traders will soon have doubts whether they have not been played.
When they try to withdraw their money, these doubts will be confirmed: the con-artists will do anything to deny or at least delay their withdrawals. From trying to convince the traders that they are making a big mistake to withdraw funds now because they will lose big profits, to asking for additional documents or citing clauses in the accepted agreements, to transferring you to another department, there is a single objective to delay the users from filing for a chargeback with their financial institution and lose any chances of recovering their money.
What to do when scammed?
Anyone can fall prey to such a scam. In the unfortunate event this happens to you, there are a few things you can do. If you deposited using a credit card you should immediately file for a chargeback. In an effort to combat online fraud VISA and MasterCard have extended the period in which one can file a chargeback to a year and a half, so there is a big chance that you may be able to recover your funds. If however, you used a bank wire or bitcoin to deposit, chances to get your money back are almost none.
We should also warn against “recovery agencies” who prey on victimized traders by claiming they can recover their funds. These scammers will ask you to pay a fee for this service, but will only take your money and do nothing.